Wednesday, 20 September 2017

Uniper and Singapore’s Pavilion Gas sign LNG deal providing access

Uniper and Singapore’s Pavilion Gas sign LNG deal providing access

to their assets in respective home markets
• Deal will enhance flexibility within portfolios of both companies
• Uniper will benefit from access to LNG assets in Asia
Uniper Global Commodities SE, Germany, and Pavilion Gas Pte Ltd, Singapore, are
expanding their liquefied natural gas trading businesses with an agreement to provide
each other access to its LNG asset base and associated flexibility from the assets.

The multi-year agreement between the companies provides Uniper access to
Singapore storage and reload facility while Pavilion benefits from the access to LNG
Re-gas capacities in Gate LNG terminal (Rotterdam, The Netherlands) and Grain LNG
terminal (United Kingdom).

The deal therefore will provide Pavilion access to UK and Continental European gas
markets, while Uniper will benefit from getting access to LNG assets in the Asian
market.

This deal will enhance the flexibility within the diverse LNG portfolios developed by both
companies over the years. It will further create LNG logistic optimization abilities for
both companies between Atlantic and Pacific basin.

Uniper brings its long track record of being one of the biggest mid-stream LNG and gas
portfolio players in Europe to the deal while Pavilion provides all the experience from
the South East Asian LNG market with focus on Singapore.

Keith Martin, member of the board of Uniper SE, said “Uniper is very pleased to have
signed this agreement with Pavilion Gas. Combining Pavilion Gas and Uniper's LNG
and midstream capabilities provides a way for our respective companies to broaden our
portfolios now and in the future through this cooperation. We are thankful to the
Pavilion Gas team for their efforts over the past months in concluding this important
Agreement with Uniper.”

Both companies will be looking to co-operate further in different areas of energy trading
providing extensive experience of their home markets and venturing into new markets
together.

Tuesday, 19 September 2017

Baker Hughes new partnership

BAKER HUGHES, A GE COMPANY AND KBC, A YOKOGAWA COMPANY PARTNER TO PROVIDE INTEGRATED PROCESS AND OPERATIONAL SOFTWARE SOLUTIONS TO THE OIL AND GAS INDUSTRY

BHGE and KBC sign strategic partnership bringing together industry-leading Asset Performance Management and Process Simulation digital capabilities across the value chain
Combining KBC’s Petro-SIM process simulation capabilities and deep domain expertise with BHGE’s analytics, digital twins, fullstream software and the GE Predix platform, with united cloud-based solutions to increase process safety, efficiency and production
PARIS —19 September 2017 – Baker Hughes, a GE company (NYSE: BHGE) and KBC a wholly-owned subsidiary of Yokogawa Electric Corporation (TOKYO: 6841), announced today a preferred partnership that will provide a combination of process simulation, asset performance management and operational software solutions to the oil and gas industry.

Leveraging GE’s Predix, the platform for the industrial internet, to deliver one unified view, this partnership extends KBC’s Petro-SIM process simulation modeling further into the fullstream oil and gas value chain, and provides connectivity between operations, assets, people and business processes for end-to-end optimization.

Integrating KBC technology with BHGE’s suite of digital solutions will allow customers to reduce bottlenecks in facilities, processes and equipment to achieve optimal production and lower risk.  By integrating data analytics connected by seamless workflows between facilities and operations, the time spent to analyze operations will be significantly reduced and the insight gained will increase production, reduce energy usage and improve product quality consistency.

“This partnership showcases our commitment to break down data “silos”, and is an ideal example of the convergence of process and operational thinking,” said Matthias Heilmann, Chief Digital Officer of BHGE. “For the first time, oil and gas customers can build a digital twin of a plant, refinery or rig, that incorporates end-to-end process and operational analytics and machine learning. With Petro-SIM providing simulation technology to our fullstream portfolio, this best-in-class solution will bring us into a new era of operational improvement.”

KBC’s Petro-SIM simulation technology already connects to cloud-based Industrial Internet of Things (IIoT) data-as-a-service solutions to remotely monitor and help improve customers’ process operations. With full integration to commercial data historian and database systems, the KBC technology offers a central repository for process topology, and stream and equipment data, with access to live and historical plant operating data for performance monitoring. Asset Performance Management (APM) from GE enables intelligent asset strategies to help optimize performance to make operations safer by helping to predict and prevent failures. It can answer critical questions on the history and current operation of an asset, as well as provide an answer to what actions should be taken to improve performance, mitigate risk and ensure overall operational safety and efficiency.

The integration of KBC process simulation and models with BHGE analytics, digital twins, fullstream software and Predix provides real-time congruence between the digital and physical worlds. A plant digital twin, enabled by this partnership, would provide a complete view of all equipment, operations and processes, comparing actual performance to expected outcomes, and enabling predictive actions. This plant twin will also enable efficient workforce management, allowing personnel to focus on critical plant operations.

“This game-changing combination of KBC and BHGE will result in solutions for customers to quickly analyze problems and opportunities, and create insights that can then be turned into actions that will assure operational excellence, and sustainability, based on the Yokogawa approach of engaging in co-innovation with customers.” said Andy Howell, CEO of KBC. “Together we will deliver molecularly-enabled digital twins of assets across the fullstream from wellbore through pipeline networks, topsides, gas plants, refineries and petro-chemical plants.”

The announcement was made in Paris during UNIFY, BHGE’s first-ever Digital User Conference dedicated to productivity-driving software applications for the oil and gas industry.

InterMoor Ltd Celebrates 10-Year LTI-Free Achievement

InterMoor Ltd Celebrates 10-Year LTI-Free Achievement

InterMoor Ltd, a leading provider of mooring services, foundation solutions and offshore installations in subsea services group Acteon, is proud to announce the completion of its tenth straight year of operation without any lost time incident (LTI).

During this decade, the company has performed close to 2,800 projects from three bases, five storage yards, and numerous quayside locations in the UK and around the world.

Alan Duncan, managing director of InterMoor Ltd, said: “I would like to recognise our entire team for this exceptional performance. Operating 3,653 days without any LTI is nothing short of remarkable in our line of work, since InterMoor's business involves handling extremely heavy mooring equipment, weighing up to 260 tons, in difficult and sometimes dangerous conditions.

“This is a testament to our rigorous safety processes and training programs, and our employees’ commitment to always put safety first.”

Bruce Strachan, InterMoor Ltd quality assurance and health, safety, and environment, manager, added: “Such an outstanding record could never have been achieved without great team work. From marine labourers, mooring chain inspectors to mariners and senior management, every team member has been dedicated to always making safety a priority and participated in our culmination of over two million man hours with zero accidents or incidents.

“This 10-year No-LTI achievement is something we can all be very proud of. We aim to continue our incident-free operations, to nurture our solid safety culture and to ensure that our employees are always safe.”

InterMoor UK Operations is certified to ISO9001:2015, ISO14001:2015 and OHSAS18001:2007. 

Monday, 18 September 2017

South Korea’s imports of Iranian crude up 40 in August

South Korea’s imports of Iranian crude up 40 in August

The latest official figures show that South Korea’s imports of crude oil from Iran saw a whopping increase of above 40 percent last month. 

Figures reported by Reuters show that South Korea, the world's fifth-biggest crude importer, brought in 1.55 million tonnes of Iranian crude last month, or 365,641 barrels per day (bpd), compared with 1.1 million tonnes in the same month in 2016.

Meanwhile, South Korea imported 4.05 million tonnes of crude, or 957,283 bpd from Saudi Arabia, up 9.8 percent from 3.69 million tonnes a year ago, the data showed.

Overall, South Korea's total crude imports in August rose 17.7 percent to 13.55 million tonnes, or 3.20 million bpd, according to the data reported by Reuters.

In January-August of 2017, South Korea shipped in 98.23 million tonnes of crude, or 2.96 million bpd, up 3.9 percent from 94.55 million tonnes over the same period last year.

South Korea, one of Iran's major Asian clients, mainly purchases ultra-light oil, also known as condensate, from Iran, but a breakdown of imports is not available. It uses condensate to produce more expensive fuels like naphtha.

For Asian buyers, Iran set the official selling prices of its light and heavy grades at 18 cents and $1.17 respectively below the Oman/Dubai average for August, while it raised September Iranian Light oil prices 20 cents higher than those in August, Reuters added.
Previous figures had shown that South Korea’s imports of oil from Iran over the first seven months of the year had increased by around 48 percent.

Figures showed that the country had imported 10.67 million tonnes of Iranian crude from January to July, or 368,952 barrels per day, from 7.22 million tonnes in 2016.

Spud of KSR-14 development well, Morocco

SDX Energy Inc. is an international oil and gas exploration, production and development company, headquartered in London, England, UK, with a principal focus on North Africa. They have recently announced the spud of its KSR-14 development well on the Sebou permit in Morocco.

This is the first of a nine well drilling programs on the Company’s Sebou, Gharb Centre and Lalla Mimouna permits in Morocco. The campaign follows extensive technical work from which the optimal drilling locations were identified. The Company is targeting an increase in its local gas sales volumes in Morocco by up to 50% and an increase in its reserves by more than 100% through this drilling campaign.

SDX expects to announce the drilling results at KSR-14 in mid-October. On success, the well will be completed, flow tested and connected to the existing infrastructure. These activities are anticipated to be carried out within 30 days of the drilling rig departing the location. Paul Welch, President and CEO of SDX, commented: "This is the start of what will be a very busy period for the Company. In Morocco, we are looking forward to commencing this nine well program which will allow us to begin to address a portion of the local demand that we have identified.

“In Egypt, we continue to make progress at South Disouq, where we plan to drill the Kelvin-1X and Bragg-1X exploration wells, targeting 150 Bscf of resources, in conjunction with two development wells in Q1 2018. 

“I look forward to reporting on the results of this first well for SDX in Morocco and the progress we are making on our South Disouq development in future releases."

Cooperation on two helicopters in Hammerfest

Together, Statoil and Eni have awarded Bristow the contract for one SAR helicopter, and one transport helicopter, which can be converted to a SAR helicopter when needed. Both are Sikorsky S-92 helicopters.

Each contract has a duration of five years with options to extend by up to three years.

The two helicopters will serve production, development and exploration operations in the Barents Sea for the two companies and for Statoil. The contracts will be used in connection with the Johan Castberg field, pending an investment decision by the end of year.

The helicopters will also be used for drilling operations on the Snøhvit field, and in the company’s exploration operations in the Barents Sea. The contract will run from September 2018.

“These long-term contracts mean that Hammerfest will be an important helicopter base for us for many years to come. Hammerfest has the infrastructure and expertise to provide efficient helicopter services, and of particular importance, the helicopter base is close to our operations in the Barents Sea”, says Philippe F. Mathieu, senior vice president for Joint Operations Support in Statoil.

The helicopters included in the contract use the Best Available Technology (BAT), which contributes to enhanced safety offshore. The SAR helicopter will be equipped with the newly developed NVG (Night Vision Goggles) technology, as well as other search technology, which significantly enhances its rescue capability, especially in search and rescue operations in the dark. 

Furthermore, it will be possible to convert the transport helicopter at short notice for use in SAR operations.  The contract includes services related to crew changes and search and rescue services.

In recent years, Eni Norge and Statoil have cooperated on the joint procurement of helicopter services in the Barents Sea. This contributes to flexibility and good utilisation of capacity, as well as long-term planning for the supplier.

“We look forward to continuing the cooperation with Bristow. The contract has been awarded following great interest and good competition in the market. At the same time, the cooperation with ENI means that we can use the helicopter resources efficiently, and maintain a sound helicopter service from Hammerfest, with transport and search and rescue capacity,” says Pål Eitrheim, Statoil’s chief procurement officer.

Bristow Norway, who has also provided helicopter services to the companies under the current contract, submitted the best tender in a competitive market with several strong tenderers.

Friday, 15 September 2017

Award of Seismic Reprocessing Contract

Echo Energy, the South and Central American focused upstream gas company, is pleased to announce the award of a seismic reprocessing contract for the 3D seismic data over the Huayco and Rio Salado blocks, onshore Bolivia.

Following a competitive tender process between eight companies, the contract for reprocessing the existing 3D seismic across the Huayco and Rio Salado blocks has been awarded to DMT Petrologic who have extensive experience in the reprocessing of vintage data in similar thrust belt areas. The initial reprocessed tranche is anticipated by the end of November 2017 with the full scope of the work anticipated to be completed during Q1 2018.

The acquisition of an interest by Echo in Huayco and/or Rio Salado remains contingent on final commercial terms being agreed and accordingly the Company does not have an interest or the right to acquire any interest at this stage during the non-exclusive evaluation period. 

The Company will also shortly be inviting investors to register their interest in an investor trip to the region in early 2018.

Fiona MacAulay, Chief Executive Officer, commented:

"I am very pleased to be able to announce the award of the contract for the seismic reprocessing which is a critical step in determining the future work programme across the Huayco and Rio Salado blocks. The level of interest and competitive bidding for the work with Echo was very encouraging and we look forward to working with DMT Petrologic over the next few months."

DGR Interest in Ugandan Oil Project

The Azerbaijan government and the State Oil Company of the Republic of Azerbaijan (SOCAR), together with BP, Chevron, INPEX, Statoil, ExxonMobil, TP, ITOCHU and ONGC Videsh today signed the amended and restated agreement on the joint development and production sharing (PSA) for the Azeri, Chirag fields and the Deep Water Portion of the Gunashli Field (ACG) in the Azerbaijan Sector of the Caspian Sea. The contract is now subject to ratification by the Parliament (Milli Majlis) of the Republic of Azerbaijan.

The contract was signed in Baku today in the presence of H.E. President Ilham Aliyev of the Republic of Azerbaijan and a group of visiting senior government and state officials, by Rovnag Abdullayev, President of SOCAR, on behalf of the Azerbaijan government, and by the representatives of the co-venturer companies.

BP will remain the operator in accordance with the amended and restated ACG PSA.

As part of the contract, the international co-venturers will pay a bonus of $3.6bn to the State Oil Fund of the Republic of Azerbaijan, and SOCAR will increase its equity share in the ACG PSA from 11.65% to 25%. During the next 32 years, there is the potential for more than $40bn capital to be invested in the ACG oil field.

Following completion of the contract, the new ACG participating interests will be as follows: BP, 30.37%; AzACG (SOCAR), 25.00%; Chevron, 9.57%; INPEX, 9.31%; Statoil, 7.27%; ExxonMobil, 6.79%; TP, 5.73%; ITOCHU, 3.65%; and ONGC Videsh Limited (OVL), 2.31%.

Subsequent to this contract, SOCAR and its co-venturers have also agreed to progress engineering development work to evaluate an additional production platform in the ACG contract area.

Rovnag Abdullayev, SOCAR President, said: “Today is a significant day for Azerbaijan. It brings back the days, when we signed the ‘Contract of the Century’. Despite the challenging political and economic conditions of that time, thanks to the intense effort by our national leader Heydar Aliyev the first ACG contract was signed, laying the foundation of the future economic development of Azerbaijan. Since the signing of the first PSA in 1994, ACG has benefited from $33bn of investment, producing around 440 million tonnes of oil, and delivering directly more than $125bn of net profit to our country.

“Finalizing the negotiation process between SOCAR and the partner companies today, we have signed the new contract on the ACG project on agreed terms. The new contract is effective until the end of 2049. The terms of the new contract will take effect following their ratification by the Parliament (Milli Majlis) of the Republic of Azerbaijan, which will enable us to maximize the economic benefits for our country from ACG over the next 32 years. The terms of the new contract reflect the growing financial and technological potential of Azerbaijan and SOCAR. They also demonstrate the confidence of our foreign partners in the Azerbaijani economy, taking our effective partnership to a new level.”

Bob Dudley, group chief executive of BP, said: “Over the past 23 years the Contract of the Century has truly transformed Azerbaijan, energy supplies to Europe and all of us who have worked so hard to make it a success. Today’s contract is perhaps an even more important milestone in the history of Azerbaijan as it ensures that over the next 32 years we will continue to work together to unlock the long-term development potential of ACG through new investments, new technologies and new joint efforts to maximise recovery. In light of that, I think it is fair to call this the Contract of the New Century.”

The Azerbaijan government and co-venturers sign amended and restated Azeri-Chirag-Deepwater Gunashli PSA

The Azerbaijan government and the State Oil Company of the Republic of Azerbaijan (SOCAR), together with BP, Chevron, INPEX, Statoil, ExxonMobil, TP, ITOCHU and ONGC Videsh today signed the amended and restated agreement on the joint development and production sharing (PSA) for the Azeri, Chirag fields and the Deep Water Portion of the Gunashli Field (ACG) in the Azerbaijan Sector of the Caspian Sea. The contract is now subject to ratification by the Parliament (Milli Majlis) of the Republic of Azerbaijan.

The contract was signed in Baku today in the presence of H.E. President Ilham Aliyev of the Republic of Azerbaijan and a group of visiting senior government and state officials, by Rovnag Abdullayev, President of SOCAR, on behalf of the Azerbaijan government, and by the representatives of the co-venturer companies.

BP will remain the operator in accordance with the amended and restated ACG PSA.

As part of the contract, the international co-venturers will pay a bonus of $3.6bn to the State Oil Fund of the Republic of Azerbaijan, and SOCAR will increase its equity share in the ACG PSA from 11.65% to 25%. During the next 32 years, there is the potential for more than $40bn capital to be invested in the ACG oil field.

Following completion of the contract, the new ACG participating interests will be as follows: BP, 30.37%; AzACG (SOCAR), 25.00%; Chevron, 9.57%; INPEX, 9.31%; Statoil, 7.27%; ExxonMobil, 6.79%; TP, 5.73%; ITOCHU, 3.65%; and ONGC Videsh Limited (OVL), 2.31%.

Subsequent to this contract, SOCAR and its co-venturers have also agreed to progress engineering development work to evaluate an additional production platform in the ACG contract area.

Rovnag Abdullayev, SOCAR President, said: “Today is a significant day for Azerbaijan. It brings back the days, when we signed the ‘Contract of the Century’. Despite the challenging political and economic conditions of that time, thanks to the intense effort by our national leader Heydar Aliyev the first ACG contract was signed, laying the foundation of the future economic development of Azerbaijan. Since the signing of the first PSA in 1994, ACG has benefited from $33bn of investment, producing around 440 million tonnes of oil, and delivering directly more than $125bn of net profit to our country.

“Finalizing the negotiation process between SOCAR and the partner companies today, we have signed the new contract on the ACG project on agreed terms. The new contract is effective until the end of 2049. The terms of the new contract will take effect following their ratification by the Parliament (Milli Majlis) of the Republic of Azerbaijan, which will enable us to maximize the economic benefits for our country from ACG over the next 32 years. The terms of the new contract reflect the growing financial and technological potential of Azerbaijan and SOCAR. They also demonstrate the confidence of our foreign partners in the Azerbaijani economy, taking our effective partnership to a new level.”

Bob Dudley, group chief executive of BP, said: “Over the past 23 years the Contract of the Century has truly transformed Azerbaijan, energy supplies to Europe and all of us who have worked so hard to make it a success. Today’s contract is perhaps an even more important milestone in the history of Azerbaijan as it ensures that over the next 32 years we will continue to work together to unlock the long-term development potential of ACG through new investments, new technologies and new joint efforts to maximise recovery. In light of that, I think it is fair to call this the Contract of the New Century.”

Thursday, 14 September 2017

TransCanada Releases Corporate Social Responsibility Report, Featuring Enhanced Disclosure on Key Sustainability Topics

TransCanada Corporation (TSX, NYSE: TRP) (TransCanada) today released its 2016 Corporate Social Responsibility (CSR) report, providing a comprehensive update on the company’s performance on environmental, social and governance topics that matter most to the communities, Indigenous groups and stakeholders involved with or affected by our business across North America.

This year’s edition of the report reflects the input gathered through our first external validation process for our CSR program that was conducted last year. It included surveys and interviews with more than 700 internal and external stakeholders to ensure we are providing the information that is most relevant to them. It is also our first CSR report that adheres to the Global Reporting Initiative’s G4 Core requirements -  the most widely used comprehensive sustainability reporting standard in the world.

This enhanced level of disclosure includes new data and performance metrics relating to pipeline safety, stakeholder and Indigenous engagement, and updated information on our position, strategy and performance related to climate change and greenhouse gas emissions.

Titled ‘Delivering Energy Responsibly,’ this year’s report is structured in a shorter, more concise format than previous years, focusing on three pillars. Highlights include:

A Healthy and Safe Environment and Community

Conducted more than 100 emergency exercises and drills at our facilities in 2016
$5 billion+ invested in emission-less energy sources, including nuclear, wind and solar
$20 million+ towards R&D in 2016, to enhance the safety and efficiency of our operations
4,000+ acres of pollinator habitat restored on TransCanada-owned properties
An Engaged Community

11,000 employee volunteer hours logged 
$16 million+ invested in more than 1,200 non-profit organizations in local communities
Engaged with more than 500 Indigenous communities in Canada, the U.S. and Mexico
A Thriving Economy

Employed more than 7,100 people across North America
Paid $555 million+ in property taxes in local communities
TransCanada is committed to delivering the energy that millions of people across North America depend on every day in an economically, socially and environmentally sustainable manner and we continue to receive recognition from third-party agencies for our achievements. For the 16th year in a row, we have been named to the Dow Jones Sustainability Index (DJSI) World Index and earned a place on the DJSI North America Index for the fourth consecutive year. We have appeared on Corporate Knights’ Best 50 Corporate Citizens in Canada list for the last seven years and are recognized by Corporate Knights for having the highest number of women in executive management in Canada’s energy sector.

Shell and Petrobras sign technical cooperation agreement to strengthen deep water partnership

Royal Dutch Shell and Petrobras signed last week in The Hague, Netherlands, a Memorandum of Understanding (MoU) to establish a long-term mutual collaboration in developing pre-salt fields in Brazil. 

In true partnership spirit between two of the world’s largest energy companies, Shell will benefit from technical solutions, contract management expertise and cost efficient initiatives Petrobras applies to Brazil’s pre and post-salt projects. Shell will share with Petrobras its global deep water experience, especially on cost efficiency efforts and use of technology. 

The MoU also involves sharing best practices and learnings on safety and governance management, technical and operational solutions, contract management, logistics, wells construction and air transportation safety.  

The document was signed by Shell CEO Ben Van Beurden and Petrobras CEO Pedro Parente, during a visit by Petrobras’ executives to the Shell headquarters.

“Competitive growth of deep-water resources remains key to our company’s strategy for decades to come, and we’re very pleased to advance the technical and operational benefits of our joint-ventures with Petrobras in Brazil,” said Wael Sawan, Executive Vice-President, Deep Water for Shell. “We’ve seen cost, safety, innovative thinking, and production growth evolve in a very positive way.  Preferred partnerships and shared expertise are core to that success.”

The agreement is valid for five years and can be renewed. Shell is a strategic partner of Petrobras in the pre-salt, with minority interests in the Libra and Lula fields and other important areas such as Sapinhoá, Lapa, and Iara, all of which are in Santos Basin.

GulfSlope Energy and Texas South Energy Announce Letter of Intent with International Oil and Gas Company for Drilling of Gulf of Mexico Prospects

GulfSlope Energy, Inc. (OTCQB: GSPE) ("GulfSlope") and Texas South Energy, Inc.(OTC PINK: TXSO) ("Texas South") (collectively, the "Farmors") announced today that they have jointly executed an exclusive letter of intent ("LOI") with a large international oil and gas company (the "Partner") to jointly drill and develop the Farmors oil and gas prospects located offshore Gulf of Mexico.

The principal commercial terms of the farmout are highlighted as follows:

Commitment by Partner to drill a minimum of three exploratory wells with the option to participate in additional three-well phases on the same basis;
The Partner will earn a 75% working interest in each prospect by (i) paying 90% of the exploratory costs and (ii) making a cash payment of $1.5 million to be split between the Farmors on a 73%/27% basis;

GulfSlope will be the initial Operator of Record and will retain a 20% working interest for the subsalt prospects included in the first phase;

Texas South will retain a 5% working interested for the subsalt prospects included in the first phase;
The Partner and Farmors will agree to an Area of Mutual Interest;

Upon achieving certain milestones, the Partner will have the right to purchase up to 20% of the common stock in each of the Farmors; and Provision for exclusive negotiations between the Partner and Farmors that expires October 31, 2017, or such later time as they mutually agree.

John N. Seitz, Chairman and CEO of GulfSlope stated, "We and Texas South are looking forward to working with our new Partner, who is a highly accomplished oil and gas company with a great track record of finding and developing substantial oil and gas resources in offshore areas. Their technical capabilities have enabled them to recognize a unique opportunity, one where the seismic and drilling technologies have converged with today's lower costs of drilling with jackup rigs and development of large scale reserve targets with fixed platforms in shallow water."

The purpose of the LOI is to facilitate further discussions between the parties on an exclusive basis with respect to the negotiation of the contemplated transaction and is a statement of the present intent of the parties to pursue the contemplated transaction in good faith. The LOI is subject to a number of conditions including completion of additional due diligence, preparation and execution of definitive agreements, and board approvals. The LOI is not binding and there is no certainty that the above mentioned negotiations will mature into any binding agreement between the parties. The final commercial terms in a binding agreement, if ultimately executed, may not be as set forth in the LOI.

Wednesday, 13 September 2017

Seadrill Announces Comprehensive Restructuring Plan to Be Implemented with Prearranged Chapter 11 Cases

Seadrill Limited ("Seadrill" or the "Company") has entered into a restructuring agreement with more than 97 percent of its secured bank lenders, approximately 40 percent of its bondholders and a consortium of investors led by its largest shareholder, Hemen Holding Ltd. 

The agreement delivers $1.06 billion of new capital comprised of $860 million of secured notes and $200 million of equity.  The Company's secured lending banks have agreed to defer maturities of all secured credit facilities, totaling $5.7 billion, by approximately five years with no amortization payments until 2020 and significant covenant relief.  Additionally, assuming unsecured creditors support the plan, the Company's $2.3 billion of unsecured bonds and other unsecured claims will be converted into approximately 15% of the post-restructured equity with participation rights in both the new secured notes and equity, and holders of Seadrill common stock will receive approximately 2% of the post-restructured equity.  The agreed plan comprehensively addresses Seadrill's liabilities, including funded debt and other obligations.  For additional information please refer to the Company's Form 6K filed along with this announcement.

The agreed restructuring plan was developed over the course of more than a year of detailed discussions, and the plan will ensure that Seadrill can continue to operate its large, modern fleet of drilling units.  By extending and re-profiling the secured bank debt, reducing leverage and delivering a significant amount of new capital, this agreement provides Seadrill with a five-year runway.  Post-restructuring, Seadrill will have a strong cash position and good liquidity to take advantage when the market recovers.

To implement the restructuring agreement, Seadrill has today filed prearranged chapter 11 cases in the Southern District of Texas together with the agreed restructuring plan.  As part of the chapter 11 cases, the Company filed "first day" motions that, when granted, will enable day-to-day operations to continue as usual.  Specifically, the Company requested authority to pay its key trade creditors and employee wages and benefits without change or interruption.  Additionally, the Company expects it will pay all suppliers and vendors in full under normal terms for goods and services provided during the chapter 11 cases.  At the point of filing, Seadrill has over $1 billion in cash and does not require debtor-in-possession financing.  The restructuring agreement contemplates a balance sheet restructuring that is not intended to affect the Company's operations.

As part of the restructuring process, Seadrill has successfully ring-fenced its non-consolidated affiliates from the Company's restructuring, including Seadrill Partners LLC, SeaMex Ltd., Archer Limited and their respective subsidiaries.  These non-consolidated affiliates did not file chapter 11 cases, and we expect their business operations to continue uninterrupted.

Commenting today, Anton Dibowitz, CEO and President of Seadrill Management Ltd., said:

"The restructuring agreement we signed today is a comprehensive plan that raises over $1 billion of new capital, is underpinned by Hemen Holding Ltd., our largest shareholder, and is overwhelmingly supported by our banks and approximately 40 percent of our bondholders.  This is a testament to our position in the sector, having a large, modern fleet, a top-quality customer base and a proven operating track record.  With our improved capital structure, we will be in a strong position to capitalise when the market recovers. 

The continued focus and dedication of all our employees throughout this process has been exceptional.  It is due to our people's commitment to deliver safe, efficient operations day in, day out that we have succeeded in reaching this restructuring agreement."

The Company has engaged Kirkland & Ellis LLP as legal counsel, Houlihan Lokey, Inc. as financial advisor, and Alvarez & Marsal as restructuring advisor.  Slaughter and May has been engaged as corporate counsel, and Morgan Stanley served as co-financial advisor during the negotiation of the restructuring agreement.  Advokatfirmaet Thommessen AS is serving as Norwegian counsel.  Conyers Dill & Pearman is serving as Bermuda counsel. 

Archer Limited: Repsol Norge awards Archer additional contracts for P&A and related services

Reference is made to the press release on August 9, 2017 regarding the award of a four year contract for P&A rig operations by Archer for Repsol Norge AS . 

Archer is now pleased to announce that Repsol also has awarded Archer Wireline and Archer Oiltools  four year frame agreement contracts for additional P&A services for Repsol Norge AS. The contract scope for Archer Wireline includes mechanical wireline services as well as pipe recovery and other electric-line logging services. For Archer Oiltools the contract scope includes barrier testing, establishing rock-to-rock barriers and permanent downhole mechanical isolation.  

“The award of these additional contracts evidences Repsol’s confidence in Archer’s capabilities in providing integrated P&A services.” said John Lechner, Archer CEO, “These additional contracts for Wireline and Oiltools services strengthens our long-term business relationship with Repsol and our position as a provider of integrated P&A services on the Norwegian Continental Shelf.”

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Proposed Sale of Wytch Farm Interests

Proposed Sale of Wytch Farm Interests

Premier is pleased to announce that it has entered into a sale and purchase agreement to sell its entire interests in Licences PL089 and P534, which contain the Wytch Farm field ("Wytch Farm"), to Verus Petroleum SNS Limited ("Verus") for a cash consideration of $200 million (subject to certain customary financial adjustments) payable on completion (the "Disposal"). In addition, Premier will be able to release Letters of Credit totalling approximately $75 million which have been issued in relation to future decommissioning liabilities that are now being transferred to Verus. The effective date of the Disposal is 1 July 2017.

Wytch Farm is an onshore oil field located in Dorset, United Kingdom that has been producing since 1979. Verus is a UK-focused independent E&P company backed by HitecVision, a Norway based private equity investor focused on the upstream offshore oil and gas industry.

Background to and reasons for the Disposal

Premier has a track record of realising value at the appropriate stage of an asset's life-cycle through active portfolio management. The Board believes that the Disposal now is in the best long-term interest of Premier and its stakeholders. It represents an excellent opportunity to realise an attractive valuation well in excess of the implied valuation from the most recent transaction in Wytch Farm.

The Disposal will generate proceeds to accelerate deleveraging of the balance sheet. Wytch Farm is non-operated, onshore and with fewer near-term growth prospects than elsewhere in Premier's portfolio.

Information regarding Wytch Farm

Wytch Farm is a large onshore oil field although a significant area extends offshore. The field has been developed with 11 well sites linked to a central onshore gathering station and is operated by Perenco UK Limited. Production is exported via pipeline to the Hamble terminal near Southampton for tanker loading.

Premier acquired a 12.4% interest in the Wytch Farm field in 1984. In December 2011, Premier completed the acquisition of an additional 17.7% interest from Perenco UK Limited and in July 2017 announced an agreement to acquire a further 3.7% from Maersk Oil North Sea UK Ltd, taking its total interest to 33.8%.

As of 31 December 2016, the estimated 2P reserves in Wytch Farm net to Premier were 14.91 mmboe. Wytch Farm production, net to Premier's working interest, averaged 5.11 boepd for the first half of 2017.

For the 12 months ended 31 December 2016, Wytch Farm generated profit before taxation of approximately $23.42 million and as at 30 June 2017 had gross assets of approximately $90.22 million.

Use of proceeds

Disposal proceeds will be used to pay down Premier's existing debt. In addition, Verus will assume all of the abandonment liabilities and associated decommissioning security. Premier will therefore be released from letters of credit, amounting to approximately $75 million, currently held for future field abandonment liabilities. Together, this will result in a reduction to Premier's covenant net debt of approximately $275 million, taking into account cash flows retained post the effective date.

Approvals and consents

Premier's lenders have provided the necessary approvals and consents required in connection with the Disposal. The transaction is subject to the pre-emption rights of existing joint venture partners, a process which will commence imminently.

The Disposal is classified as a Class 1 transaction as defined by Chapter 10 of the UKLA Listing Rules. As such, the Disposal is conditional upon shareholder approval. In addition, the Disposal is conditional upon satisfaction of certain customary conditions including government and third party approvals. Subject to fulfilling these conditions, it is expected to complete by the end of December.

Further details of the Disposal and a notice to convene a general meeting will be sent to Premier's shareholders in due course.

Tony Durrant, Chief Executive, commented:

"The Disposal will allow for a significant reduction in Premier's net debt and generates material value for shareholders. This is the latest in a series of disposals in line with Premier's strategy of realising value for shareholders at the appropriate stage of an asset's life cycle and at an attractive valuation."

Tuesday, 12 September 2017

Sembcorp Marine’s Estaleiro Jurong Aracruz secures Hull Carry Over Works Worth US$145 Million for FPSO P-68 TUPI PROJECT

Sembcorp Marine’s Estaleiro Jurong Aracruz secures Hull Carry Over Works Worth US$145 Million for FPSO P-68 TUPI PROJECT

Sembcorp Marine’s wholly-owned Brazilian subsidiary, Estaleiro Jurong Aracruz Ltda (“EJA”), has secured hull carry over works (“Hull COW”) worth about US$145 million from Tupi B.V. for the FPSO P-68 Tupi Project. Tupi B.V. had in July 2012 awarded EJA the contract for the Modules Construction and Integration of FPSO P-68 (“Contract”).

The Hull COW is an addition to the current Contract scope of work. The additional work will enable full integration of the FPSO P-68.

Barring any unforeseen circumstances, Sembcorp Marine expects a positive contribution to its earnings from the Contract. However, the Contract is not expected to have any material impact on the net tangible assets and earnings per share of the Company for the year ending December 31, 2017.

Monday, 11 September 2017

BP’s Glen Lyon FPSO classed by DNV GL

BP’s Glen Lyon FPSO classed by DNV GL 

DNV GL has awarded class to BP’s Glen Lyon Floating Production Storage and Offloading (FPSO) vessel located west of Shetland. DNV GL’s Maritime and Oil & Gas business areas have been working closely together, to provide BP with a broad range of technical skills required for the challenging conditions in which the FPSO will operate.

Glen Lyon is a purpose-built FPSO which is expected to produce 130,000 barrels of oil a day at peak production. The vessel was transferred into class shortly after first oil in May 2017.

The classification scope covers the essential elements of the marine vessel, the structure, floatability, station keeping, and essential marine systems, and ensuring the asset integrity of these key features.

Ernst Meyer, Director of Offshore Class, DNV GL, says: “The FPSO market is our most important source of growth for Offshore Class and we have worked systematically to win class transfers over the two last years. The Glen Lyon is coming on top of five other recent class transfers in Brazil, Nigeria and Iran, making DNV GL the leading offshore class society in the industry.”

The inspection regime is based around a risk-based inspection (RBI) model, taking into account the knowledge gained from the newbuild engineering and construction. A structural integrity model of the hull was built to manage the asset together with BP.

The work performed by DNV GL on the classification of the hull will also be used in supporting BP’s compliance with the UK safety case regime.

Scott Jervis, Regional Offshore Manager, DNV GL, says: “We are especially proud to have developed a risk-based inspection process for the classification on this vessel. Throughout this project, DNV GL has shown a broad range of competences from both our Maritime and Oil & Gas business areas, to develop a solution for BP’s needs.”

Haskel Names Aussie Fluid Power as Newest Distributor to Better Serve Australian Clients

Haskel Names Aussie Fluid Power as Newest Distributor to Better Serve Australian Clients

Haskel is proud to announce the selection of their newest distributor, Aussie Fluid Power, which will serve customers in this region who are in need of expert hydraulic solutions in oil and gas applications.

Haskel, an Accudyne brand and a market-leading manufacturer of high- pressure equipment, recently named Aussie Fluid Power (AFP) as the newest distributor to join the Haskel network. This partnership will allow Haskel to serve a broader customer base in Western and Northern Australia.

The partnership creates a great advantage, combining the experience and reputation in superior high- pressure equipment of Haskel with the energetic spirit and knowledgeable sales team of AFP. To ensure the success of this new business opportunity, AFP has appointed a designated Haskel Product Champion to manage Haskel-related inquiries.
Haskel's expertise in high-pressure equipment covers a full range of products, all of which are backed by the company's reputation for superior quality and reliability. Through the agreement with AFP, Haskel products including hydraulic power units, testing equipment and gas boosters will be more readily available to customers in the regions of Western and Northern Australia.

AFP, a young company compared to others in the industry, has quickly established itself as the market leader in Western Australia for fluid power expertise. They have placed engineering at the center of their business model, backing all sales with a team of qualified and highly skilled engineers. The company's exceptional aftermarket support also aligns with Haskel's unrivalled dedication to quality, safety, reliability and service.

Because AFP has manufactured solutions including standard hydraulic power units, testing equipment, specialized chemical injection systems and large flushing rigs, they are an ideal partner and distributor for Haskel's high-pressure equipment. Haskel has also set up a diversification program to help AFP develop the Haskel brand based on established applications and markets.

Friday, 8 September 2017

MELCAL secures a large EPCI contract from Saipem for the Al-Zour Refinery Project

Located approximately 90 kilometers south of Kuwait City, the world’s largest grassroots refinery, Al-Zour Refinery Project (ZOR), will be built by Kuwait National Petroleum Company. Once completed, this state-of-the-art facility will boast an impressive 615,000 bpd capacity. In accordance with KPC’s upstream strategy, the new refinery is designed to process various types of crude oil, including Kuwait Heavy Crude (KHC) oil. 

MELCAL has been selected by Saipem to supply the engineering, procurement, construction and pre-commissioning of 5 cranes. For the design of this equipment MELCAL will follow API SPEC 2C, 6th ed. standards, SHELL DEP Version 32, and SHELL MESC Version 13. The new cranes are to transfer solid, and liquid products to bulk carriers and tankers. The contract also includes the transport and installation of the cranes in the marine export terminal. 


Benedetto Catanzaro, CEO of MELCAL: “We are delighted to have been awarded a contract from Saipem and are proud to supply our handling solutions to one of the key players in the oil and gas industry. This contract truly is an important milestone for MELCAL, and an exciting challenge for our team”. 

Arctech Helsinki Shipyard awards MELCAL a contract for hose handling cranes

MELCAL is pleased to announce that it received a new contract from Arctech Helsinki Shipyard for the design and production of two ATEX Zone 1, IIB T3 cranes, which are to be installed onboard an icebreaking arctic tanker. The hose handling cranes will feature heated cabins and are designed to handle both cargo hoses and bunker fuel hoses, as well as provisions and engine spares. In man-riding mode, the cranes are also suitable for safe lifting of personnel. Designed to work in an extreme ambient temperature of - 50°C, the hose handling cranes include anti-icing and de-icing measures, complying with the RS class notation for winterization.

The tanker will sail from the Yamal Peninsula to both Europe and Asia and is able to navigate these routes independent of ice breakers. The main purpose of the vessel is to exploit the Northern Sea route, securing safe and year-round transportation of gas condensate.

“We look forward to continue our long-standing collaboration with Arctech Helsinki Shipyard”, says Benedetto Catanzaro, CEO of MELCAL. “This is an inspiring moment for all MELCAL employees, as this new order demonstrates our great working relationship with a highly valued client ”.

Amec Foster Wheeler wins US$604 million EPC contract for US methanol plant

Amec Foster Wheeler wins US$604 million EPC contract for US methanol plant

Contract awarded by Yuhuang Chemical Inc, a subsidiary of China’s Shandong Yuhuang Chemical Company
Follows on from Amec Foster Wheeler's successful early phase work on the US$1.85 billion plant
Amec Foster Wheeler has been awarded a US$604 million engineering, procurement and construction (EPC) fixed price contract for part of a US$1.85 billion methanol plant being developed by Yuhuang Chemical Inc (YCI), a US-based subsidiary of China’s Shandong Yuhuang Chemical Company Co. Ltd. The first phase of the project, which includes the construction of a 1.8 million-tonne per annum methanol plant, is being built at YCI’s 1,300-acre site in St. James Parish, Louisiana, U.S.

The contract award reflects Amec Foster Wheeler’s strategy to grow both its chemicals business - as demand increases due to comparatively low oil and gas prices and its EPC portfolio. It follows the successful completion of an earlier phase of work at the plant awarded to Amec Foster Wheeler in 2015, covering engineering, project management, procurement and early construction services. The deep knowledge of the plant gained over the last two years, coupled with the recent local construction experience of Amec Foster Wheeler’s Power & Process business, gives an advantage for both contractor and client. The Power & Process business has successfully executed US$3 billion of lump sum EPC work in the last three years.

In this latest contract award, Amec Foster Wheeler will combine the expertise and skills of its Oil, Gas & Chemicals and its Power & Process businesses to carry out specific infrastructure and utilities engineering work, the procurement of bulk items and selected tagged equipment, and the construction of the methanol plant.

In line with the ‘full notice to proceed’, US$604 million will be added to the Company’s order book in the second half of the year.

We are very pleased to continue working with Amec Foster Wheeler to complete on time and budget the project in order to start the distribution of the IMPCA* quality methanol produced at the plant in Q4-2019.
Dr. Charlie Yao, President of YCI

Jonathan Lewis, Chief Executive Officer, Amec Foster Wheeler plc
I’m delighted that we have been entrusted to continue supporting YCI on the largest grassroots foreign direct investment by a Chinese company on the Gulf Coast of the United States. Winning this contract is a further demonstration of how we are leveraging our multi-market capabilities to better serve our clients, extend our presence in high-growth areas, such as the chemicals market, and contribute to the growth of our order book.

We look forward to working with YCI to meet the project’s challenges, and delivering safely and successfully this new world-scale facility to operate at full capacity.
Jonathan Lewis, Chief Executive Officer, Amec Foster Wheeler plc

BCCK HOLDING COMPANY APPOINTS KEVIN J. BLOUNT AS VICE PRESIDENT OF CORPORATE DEVELOPMENT

BCCK HOLDING COMPANY APPOINTS KEVIN J. BLOUNT AS VICE PRESIDENT OF CORPORATE DEVELOPMENT

BCCK Holding Company (BCCK), a leader in engineering, procurement, fabrication and field construction services, has appointed Kevin J. Blount as vice president of corporate development to support company growth in the global gas processing, LNG and petrochemical markets. He will be based in Houston.

Blount has more than 30 years of experience with Chart Industries, serving in a variety of senior management roles across a wide spectrum of business activities including operations; engineering; sales and marketing; business development; mergers and acquisitions; and most recently, vice president, strategy and business development.

Clark Butts, BCCK president and CEO, commented, “I am delighted to welcome Kevin to the BCCK family. I am confident that his industry experience in gas processing, LNG and petrochemical global markets will help open a new chapter in BCCK’s growth story.”

Blount said, “I have admired BCCK’s capabilities and its management team for a number of years. These are exciting times for the business with lots of opportunities. I look forward to bringing my skills and experience to help the company achieve its strategic growth goals both domestically and internationally.”

Blount holds a master’s degree in business administration from Wolverhampton University in the UK.

Thursday, 7 September 2017

Increased Digitalisation of Offshore Oil and Gas Sector Could Hold Key to Sustained Lower Operating Costs

Increased Digitalisation of Offshore Oil and Gas Sector Could Hold Key to Sustained Lower Operating Costs

More needs to be done to increase the use of digitalisation within the offshore oil and gas industry as a way of achieving sustained lower operating costs (Opex), a new report has found.

A joint study by leading software company, AVEVA, and Westwood Global Energy Group (Westwood), a leading international research led consultancy firm, interviewed a variety of decision makers both within the Exploration and Production (E&P) and oilfield services companies to better understand their views on digitalisation. 

It was found that while the benefits of digitalisation, using tools such as intelligent data management and laser scanning to create a Digital Twin, are generally recognised the industry’s risk averse culture coupled with reduced budgets amidst the oil price downturn and common misconceptions is preventing its full potential from being realised.

Michail Tzouvelekis, Marketing Solutions Director at AVEVA, said: “Our report provides valuable insight into the perceptions of digitalisation in offshore operations – particularly maintenance and modification. New data provided by Westwood also improves our understanding of the short to mid-term outlook for the industry.

“It’s clear from the study that both the oil and gas industry and providers of the digitalisation tools need to step up their efforts, if the industry is to realise the full long-term benefits of these technologies.”

An executive summary of the report, “Digitalisation Offshore - Is It The Answer To Sustained Lower Operating Costs?” has been published to coincide with the launch of Offshore Europe which takes place in Aberdeen this week. In addition to views on the use of digitalisation, it also contains new data from Westwood on the outlook for the offshore oil and gas sector.

The report confirms that since the highs of 2014, the price of Brent Crude has tumbled by 76%, from $114/bbl to $28/bbl in January 2016. As a consequence, global oil and gas Capex and Opex investments also dropped sharply by 42% and 22% respectively. Looking to the future, Westwood’s Base Case scenario assumes average Brent spot prices will rise to $70/ bbl. by 2021 with overall E&P spend also recovering modestly. 

As the offshore oil and gas industry adjusts to a lower-for-longer oil price mindset,
production optimisation (to maintain cash
flows) and sustainable cost rationalisation via
supply chain pricing compression, enhanced operational efficiencies and standardisation
have become increasingly important.  

Westwood’s research estimates that since
2014, average upstream capital costs have fallen by 42%, with much of the initial savings
due to immediate price reductions for
offshore marine infrastructure (rigs, vessels
etc.) and improved drilling efficiencies.
Increased standardisation and simplified engineering have contributed to deep water and shallow water costs per barrel to drop by 62% and 37% respectively since 2012. 

Arindam Das, Director and Head of Westwood EMEA Consulting said: “As the industry adjusts to a lower for longer and volatile oil price outlook, digitalisation is especially pertinent in the context of offshore operations which continue to be challenged”

The majority of interviewees said they believed digitalisation would deliver benefits including reduced Opex, better quality and sharing of data and more efficient projects. Those interviewed also said they felt the industry had been slow to embrace the technology because of the current downturn as well as misconceptions such as high-up front costs and long lead times to realising a return on investment.

“While the downturn has helped to make the case for digitalisation, parts of the industry have been more open to change than others,” said Tzouvelekis. 

“We are finding that some companies, particular supermajors are typically further ahead with digitalisation projects than others such as independent operators, where there is less focus. FPSO operators, in line with the wider marine industry, are already beginning to implement digitalisation initiatives,” he added.

The report has called for a concerted effort to promote the benefits of increased digitalisation. 

It states: “An important next step is to promote digitalisation considerably, including an industry wide concerted effort towards engineering data standardisation, overcoming cultural inertia and addressing misconceptions. Looking ahead, participants expected the emphasis to be on innovative and intelligent solutions. 3D models that integrate the complete data framework of enabling real time access to data. The Digital Twin was highlighted as allowing E&P operators to plan for the future and reduce unexpected downtime.” 

ABB technology set to power demand for increasing North Sea production capacity

ABB technology set to power demand for increasing North Sea production capacity

A series of floating storage units (FPUs) entering service are powered, controlled and supported by ABB and ready to tap into the huge North Sea production capacity.

ABB power equipement, automation systems and lifecycle support care programs are being deployed across four new floating storage units (FPUs) that are scheduled to, or have recently come, on stream, tapping into the huge new production capacity in the North Sea.

Around 40 percent of the global oil and gas recovery comes from offshore reserves. With the bulk of new discoveries also expected offshore, increasingly operators are turning to those fields that hold the biggest promise.

Among the most recent FPUs to come on stream are Armada Kraken Pte Ltd, a subsidiary of Bumi Armada Berhad, a Malaysia-based international offshore oilfield services provider and the Western Isles Development Project (WIDP), operated by Dana Petroleum. Other FPUs being supplied are set to operate in the Greater Stella Area, located in the heart of the Central Graben area of the Central North Sea and within the Mariner field, both on the UK Continental Shelf.

For the Armada Kraken FPU, ABB supplied medium and low-voltage switchgear, transformers, medium-voltage variable speed drives (VSDs), uninterruptible power supplies (UPSs) and electrical monitoring and control systems. All are packaged within a prefabricated e-house to protect from the extreme weather conditions encountered in the North Sea. ABB’s scope also includes the automation system, controlling process and marine systems that control the vessel’s routine operations, providing real-time feedback and diagnostic information to its operators.

The vessel was delivered to the oil company EnQuest UK, which began operations at the Kraken field in the East Shetland Basin of the North Sea earlier this year, (2017) . The Kraken oil field is the biggest subsea oilfield project in the North Sea with an expected capacity of 140 million barrels of oil and a life of 25 years.

The Western Isles Development Project (WIDP), operated by Dana Petroleum, comprises two oil fields in the Northern North Sea. ABB supplied wide-ranging equipment, including safety and automation systems (SAS), information management system (IMS), condition monitoring system (CMS) and operator training system (OTS).

The company’s electrical design engineers have optimized the equipment’s internal arrangements to minimize overall footprint. Equipment includes 11 kV and 690 kV switchgear, transformers, high voltage and low voltage VSDs and UPS. Tight integration of these systems is achieved by employing the latest communication standards, IEC61850, ProfiNET, and IED/relay technologies. Sixteen different telecommunications systems are supplied, including a public address system, entertainment, meteorological and a Global Maritime Distress and Safety System (GMDSS).

ABB is responsible for engineering, installation, commissioning and project management of the total automation, electrical and telecommunication package.

Kraken and WIDP North Sea FSUs will be supported by ABB’s extensive service teams and knowledge hub. Service contracts are available and range from integrated control and safety systems (ICSS) healthcare to bespoke VSD service agreements.

ABB is a pioneering technology leader in electrification products, robotics and motion, industrial automation and power grids, serving customers in utilities, industry and transport & infrastructure globally. Continuing more than a 125-year history of innovation, ABB today is writing the future of industrial digitalization and driving the Energy and Fourth Industrial Revolutions. ABB operates in more than 100 countries with about 132,000 employees. www.abb.com .

Wednesday, 6 September 2017

Tata Steel announces further commitment to North Sea and global oil and gas with new investments - 06/09/2017

Tata Steel announces further commitment to North Sea and global oil and gas with new investments

Company to highlight its North Sea successes with key sponsorship at Offshore Europe

Tata Steel has emphasised its commitment to the North Sea and the global oil and gas industry by announcing a near £2 million programme of investments at its 20” high frequency induction (HFI) pipe mill in Hartlepool, UK, to offer a new generation of higher strength offshore construction grades.

The company’s investment in Hartlepool is supported by a multi-million pound investment at its Port Talbot hot strip mill in Wales. The process investment in Port Talbot will offer enhanced low temperature toughness capabilities for HFI welded line pipe produced at the Hartlepool 20” mill, resulting in improved and uniform fracture toughness across the 20” mill’s product size range.

The investment programme for the Hartlepool 20” mill includes £1 million, for the installation of accelerated cooling equipment, which will increase the mill’s range of high-strength offerings for the structural requirements of the North Sea and the wider construction market.

The company’s Celsius® accelerated cooling process has been developed in conjunction with Tata Steel’s research and development teams following extensive laboratory and mill-based trials.

Tata Steel has also committed £350,000 for further safety improvements in guarding, pipe handling and immobilisation control access in the finishing and despatch areas at the 20” mill. This follows a £400,000 investment earlier this year in the weld mill area and is in line with the 20” mill’s five-year improvement programme to enhance workplace safety and improve productivity.

As part of its ongoing investment in product quality at the 20” mill, the company has spent £400,000 to install automatic laser measurement to its hot structural finishing line and upgrades to the descaling process on the RHS (rectangular hollow section) furnace to improve product surface finish.

And, as the official name badge sponsor at the Offshore Europe conference and exhibition, to be held in Aberdeen from September 5-8, Tata Steel will promote all the North Sea oil and gas projects which it has delivered line pipe to over the past 20 years in the form of a word cloud, depicting the quantity of steel tonnage by the size of the project name. Tata Steel personnel will also be attending Offshore Europe.

Barry Rust, Energy & Sustainability Manager, Tata Steel, said: “These important investments demonstrate Tata Steel’s continued commitment to health and safety and in improving and increasing our product range to the North Sea and the oil and gas industry around the world, to help it meet ever increasing challenges.

“We’ve been involved in some of the largest projects in the UK Continental Shelf over the last 20 years and look forward to supporting the North Sea and the international industry for many years to come.” 

Tuesday, 5 September 2017

Gas to become world’s primary energy source by 2035

Gas to become world’s PRIMaRY energy source by 2035

Oil and gas will be crucial components of the world’s energy future, according to DNV GL’s forecast of the energy transition. While renewable energy will grow its share of the energy mix, oil and gas will account for 44% of world energy supply in 2050, compared to 53% today. Gas will become the largest single source of energy from 2034.

DNV GL’s Energy Transition Outlook (ETO), a forecast that spans the global energy mix to 2050, predicts that global demand for energy will flatten in 2030, then steadily decline over the next two decades, thanks to step-changes in energy efficiency. The fossil fuel share of the world’s primary energy mix will reduce from 81% currently to 52% in 2050.  

Demand for oil will peak in 2022, driven by expectations for a surge in prominence of light electric vehicles, accounting for 50% of new car sales globally by 2035. However, the stage is set for gas to become the largest single source of energy towards 2050, and the last of the fossil fuels to experience peak demand, which DNV GL expects will occur in 2035.

Gas will continue to play a key role alongside renewables in helping to meet future, lower-carbon, energy requirements. Major oil companies intend to increase the share of gas in their reserves, and DNV GL expect an accelerated shift by 2022 as they decarbonize business portfolios.

While demand for hydrocarbons will peak over the next two decades, significant investment will be needed to add new oil and gas production capacity and operate existing assets safely and sustainably. However, the results of DNV GL’s model reinforce the need to maintain strict cost efficiency in order to achieve the margins necessary for future capital and operational expenditure. 

“We have seen impressive and important innovative efforts across the energy industry, resulting in cost saving and efficiency gains. The oil and gas industry must continue on a path of strict cost control to stay relevant. Coming from a tradition of technological achievements, and having the advantage of existing infrastructure and value chains, this industry has the potential to continue to contribute to energy security and shape our energy future,” said Elisabeth Tørstad, CEO, DNV GL – Oil & Gas.

“Increased digitalization, standardization and remote or autonomous operations will play a central role in achieving long-term cost savings and improving the oil and gas industry’s carbon footprint. We also expect the industry to turn to innovations in facility design, operating models and contracting strategies,” Tørstad added.

DNV GL has published a suite of reports on the Energy Transition Outlook, which are available to download free of charge. The main ETO report covers the transition of the entire energy mix to 2050. Three sector-specific supplements will accompany this: an oil and gas supplement and a renewable, power and energy supplement are both available this week. A maritime supplement will be available later this year. DNV GL’s oil and gas supplement considers some of the key trends identified by the company’s model across the sector’s value chain, and explores their implications. 

Statoil’s Johan Sverdrup field - one of the fifth largest development projects on the Norwegian Continental Shelf - 05/09/2017

Statoil’s Johan Sverdrup field - one of the fifth largest development projects on the Norwegian Continental Shelf – secures Lloyd’s Register’s expertise for production start-up in 2019

Lloyd’s Register (LR), a leading global provider of engineering and technology-centric professional services, has signed a contract between its Risk Management Consulting team and Statoil. The contract will use LR’s expertise to conduct total risk analysis for the riser platform modification project at the Johan Sverdrup field which is forecast for production start-up in late 2019.

Most of this FEED (front end engineering design) work phase is being carried out by LR’s Bergen-based Risk Management Consulting team.

The Johan Sverdrup field development is a phased development. The first phase is underway and consists of a field centre comprising four (4) platforms (LQ, P1, DP, RP) interconnected via bridges, plus three (3) subsea water injection templates. Also included in this first phase are export pipelines to existing infrastructure and power supplied from shore.

The second phase of the Johan Sverdrup, which LR’s team is contracted to work on, includes production capacity increase, tie-back of satellites, increased oil recovery (IOR) and an area solution for power from shore. It comprises an extension of the field centre with an additional process platform, P2, placed on the east side of the RP and interconnected to the RP via a new bridge. An additional HVDC (high-voltage, direct current) system with power supply from shore will be installed as part of this phase. The HVDC system will also supply power to third-party fields in the Utsira High area, namely Edvard Grieg, Ivar Aasen and Gina Krog.

Aker Solutions performed conceptual study work for this phase in 2016. The concept studies comprise tie-ins to existing platforms, i.e. detailing of RP, P1 and bridges modifications due to tie-in of the new process platform P2, as well as developing the conceptual design of P2.

Robert Nyiredy, European Sales Manager at LR’s Risk Management Consulting team, says: “This is a significant and important win for LR as this is one of the fifth largest development projects on the Norwegian Continental Shelf, and is one of the most important developments to be located in Norway over the next 50 years.”

Monday, 4 September 2017

Total starts-up production of the Edradour & Glenlivet fields in the West of Shetland

Total starts-up production of the Edradour & Glenlivet fields in the West of Shetland

Total has started-up production from the Edradour & Glenlivet gas and condensate fields, located in about 300 to 435 metres of water in the West of Shetland area, close to the Laggan-Tormore fields which came on stream in February 2016. The Edradour and Glenlivet development will bring additional production capacity of up to 56,000 barrels of oil equivalent a day (boe/d). 

“The start-up of the Edradour & Glenlivet fields demonstrates Total’s ability to deliver projects, taking advantage of favourable market conditions and simplifying designs to optimise execution. We have completed this project ahead of schedule and 30% under the initial budget”, said Arnaud Breuillac, President Exploration & Production. “This development will contribute to our production growth in the North Sea.”

The Edradour and Glenlivet development consists of a 35 kilometre tie-back of three subsea wells to the existing Laggan-Tormore production system, which include the 143 kilometre pipeline and the onshore Shetland Gas Plant. Following treatment at the gas plant, the gas is exported to the UK mainland via the Shetland Island Regional Gas Export System (SIRGE) and FUKA pipeline, and will serve the UK domestic market. The condensates are exported via the Sullom Voe Terminal. 

Total E&P UK operates Edradour & Glenlivet with a 60% interest alongside partners DONG E&P (UK) Limited (20%) and SSE E&P UK Limited (20%).

Total Exploration & Production in the United Kingdom

Total has been present in the United Kingdom for more than 50 years and is one of the country’s leading oil and gas operators, with equity production of 158,000 boe/d in 2016. Total’s production in the United Kingdom comes from several operated fields located offshore in three major zones: the Alwyn/Dunbar area in the Northern North Sea, the Elgin/Franklin area in the Central North Sea and the new Laggan-Tormore hub in the West of Shetland area.